18 Sep 2013 07:00
Standard Life European Private Equity Trust PLC
1. Investment update for the quarter ended 30 June 2013
· NAV rose by 1.4% to 247.3p for the quarter ended 30 June 2013
· NAV total return was up 8.1% for the six months starting 1 January 2013
· Realised gains and income during the quarter ended 30 June 2013 were £7.1 million (1.8% of NAV). The unrealised losses on the portfolio on a constant exchange rate basis were £4.8 million (1.2% of NAV); in addition, there were unrealised foreign exchange gains of £4.2 million (1.1% of NAV).
· 100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2013
· Outstanding commitments were £197.4 million at 30 June 2013
· Net cash was £27.7 million at 30 June 2013
For the quarter ended 30 June 2013 the Company's net asset value per ordinary share ("NAV") rose by 1.4% to 247.3p (diluted - 244.2p), from 243.9p (diluted - 240.9p) at 31 March 2013. At 30 June 2013 the Company's net assets were £400.0 million (31 March 2013 - £394.5 million).
The volume of new transactional activity remained subdued in the European private equity market in the second quarter of 2013, due to the challenging macro-economic and political environment in Europe. However, supported by increased liquidity in the leveraged debt markets the value of new transactions rose markedly, with a notable rise in the number of large and mega buy-outs. A total of €26.5 billion of transactions by enterprise value was reported during the quarter, which was materially higher than the €10.4 billion reported in the first quarter of 2013. The Manager also continued to see exit activity across the Company's portfolio as private equity managers focused on selling, or in some instances re-capitalising, investee companies.
The closing value of the Company's portfolio of 41 private equity fund interests was £374.3 million at 30 June 2013 (31 March 2013 - £375.7 million). The total unrealised losses on the portfolio for the quarter ended 30 June 2013 were £0.6 million, of which £4.8 million were unrealised losses on a constant exchange rate basis and £4.2 million were unrealised foreign exchange gains. The £4.8 million of losses in the value of the portfolio on a constant exchange rate basis reflected weaker listed equity markets, partially offset by positive earnings growth at many underlying portfolio companies. The MSCI Europe Index (in euros) and the FTSE All Share Index (in sterling) fell by 3.2% and 2.7% respectively during the quarter. The unrealised foreign exchange gains were driven by the euro appreciating by 1.3% relative to sterling over the quarter.
During the quarter the Company funded £7.5 million of draw downs (six months ended 31 March 2013 - £21.1 million) and received £15.5 million of distributions (six months ended 31 March 2013 - £28.5 million). The distributions received generated £7.1 million of realised gains and income, which was equivalent to a return of 1.9 times the acquisition cost of the realised investments.
On 28 June 2013 the Company made a new primary fund commitment of €30.0 million to CVC Capital Partners VI. The Company has invested in five prior funds of the manager, CVC Capital Partners.
The Company had total outstanding commitments of £197.4 million at 30 June 2013 (31 March 2013 - £177.3 million). At 30 June 2013 the Company had a cash balance of £27.7 million (31 March 2013 - £21.5 million).
2. Activity since 30 June 2013
During the period from 30 June 2013 to 17 September 2013 the Company funded £9.4 million of draw downs and received £13.9 million of distributions. The Company made no new primary fund commitments during the period, however, the Company completed the purchase of an original commitment of €10 million to Bridgepoint Europe IV in July 2013. The fund interest was acquired at a 4% discount to the 31 December 2012 valuation of the fund, adjusted for subsequent cashflows. The purchase price for the fund interest was £7.4 million and the Company assumed £1.6 million of outstanding commitments.
In addition, the Company completed the sale of its remaining original commitment of €30 million to Charterhouse VIII in August 2013. The fund interest was sold at a 2% discount to the 31 March 2013 valuation of the fund, adjusted for subsequent cashflows. The sale price for the interest was £18.5 million and the Company was released from £3.4 million of outstanding commitments.
Accordingly, at 17 September 2013 the Company's total outstanding commitments and cash balance were £181.6 million and £40.5 million respectively.
It is anticipated that the Company will release its preliminary announcement for the financial year ending 30 September 2013 on or around 28 November 2013.
For further information please contact:-
Peter McKellar of SL Capital Partners LLP (0131 245 0055)
Note:-
Standard Life European Private Equity Trust PLC is an investment company managed by SL Capital Partners LLP, the ordinary shares of which are admitted to listing by the UK Listing Authority and to trading on the Stock Exchange and which seeks to conduct its affairs so as to qualify as an investment trust under sections 1158-1165 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.